"Local" Foods As Economic Recovery: Ken Meter

“Local” Foods as
Economic Recovery
Ken Meter
Crossroads
Resource Center
(Minneapolis)
New West Conference

Boise, Idaho
June 4, 2010
“Finding Food in Farm Country” Studies
plus Maui & Hawai’i
50 regions in 22 states & one province

Local Farm & Food Economies
The perspectives of the

communities where food is
produced and eaten...
…are often overlooked

Vision for local food economies
Build:
Health
Wealth
Connection
Capacity
Local action matters
State and local governments

spend $50 billion each year to
subsidize economic development
Wall Street Journal, Oct. 11, 2008

“Local” is a shorthand....
Photo: DSC
Goal: to build
Community-Based
Food Systems
Photo: DSC
“Greater
Treasure
Counties: Valley”
Ada
Canyon
Elmore
Gem
Owyhee
Payette
Washington
Harney (OR)
Malheur (OR)
Map: Idaho State University

Greater Treasure Valley
• 690,911 residents
• Earn $24 billion income
each year
Source: Federal Census 2000, BEA
Households
0
5,000
10,000
15,000
20,000
25,000
less than $10,000
$10,000 - $14,999
$15,000 - $19,999
$20,000 - $24,999
$25,000 - $29,999
$30,000 - $34,999
$35,000 - $39,999
$40,000 - $44,999
(28%) below
150,544 people
$45,000 - $49,999
185% of poverty
$50,000 - $59,999
$60,000 - $74,999
$75,000 - $99,999
Household income in Treasure Valley, 1999
$100,000 - $124,999
$125,000 - $149,999
$150,000 - $199,999
$200,000 or more
Health suffers
63% of Boise metro

region’s residents are
overweight (38%) or
obese (25%)
Source: Centers for Disease Control (2008)

Health in Greater Treasure Valley
Estimated costs for treating

diabetes are estimated at $399
million per year
Source: American Diabetes Association (2010)

Greater Treasure Valley’s
Food & Farm Economy
• 60% of farms sell

less than $10,000
• 15% sell more than

$100,000
Source: USDA Census of Agriculture 2007

Greater Treasure Valley — key products
Census of Agriculture (2007) — some data** suppressed

Key Commodities
Substantial Data is
suppressed for
“confidentiality”
Census of Agriculture (2007)

Food & Farm Economy
• 880 farms sell direct to consumers

(36% decrease)
• $5.7 million sales

(181% increase)

Greater Treasure
Valley’s Food & Farm
Economy
Direct sales are 0.3% of farm

sales —
just less than national average

Farm Production Balance in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
2,500
Cash Receipts
2,000
Production expenses
Balance
$ millions (current)
1,500
1,000
500
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Bureau of Economic Analysis
3,000
Cash receipts
2,500 Production expenses
Balance
$ millions (2007 dollars)
2,000
1,500
1,000
500
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
3,000
Cash receipts
Balance
2,000
1,500
1,000 $94 million more than 1969
500
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
$5 billion gained since 1987
Greater Treasure Valley farmers sell an
average of $1.8 billion of crops and
livestock
Spend $1.6 billion to raise them

(1987-2008 average)
Average gain: $221 million per year

62% of all farms
reported net
losses in 2007 —
after subsidies
USDA Census of Agriculture 2007

Crop and livestock sales in
2,000
1,800
Livestock
1,600 Crops
1,400
1,200
1,000
800
600
400
200
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Farm production expenses in
900
Feed purchased
800
Livestock purchased
700 Seed purchased

Fertlizer and Lime
600 Petroleum products

Hired farm labor
500
400
300
200
100
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
$600 million of these farm inputs
are purchased from outside the region
Source: Ken Meter using data from Agriculture Census 2007

Also a region of food consumers...
Finding Food in Farm Country
As farmers struggle...
• Consumers buy $1.87 billion

of food each year
• $1.7 billion from outside region
Source: Ken Meter using Bureau of Labor Statistics

Markets for food eaten at home
millions
Meats, poultry, fish, and eggs $ 236
Fruits & vegetables 210
Cereals and bakery products 140
Dairy products 126
“Other,” incl. sweets, fats, & oils 388
Source: Census & BLS

If consumers bought only 15% of

their food directly from local farms:
$165 million of new farm income

earned each year
Source: Ken Meter calculated from BLS & BEA data

The good news is...
Current
Farm farm incomeBalance
Production compared
in to
Greater Greater
TreasureTreasure
Valley /Valley
Idaho consumer market
& Oregon, 1969-2008
3,000
Cash receipts
Balance
2,000
1,500
1,000 Region’s consumer market
500
0
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Source: BEA and BLS
All told, Greater Treasure Valley…
• Gains $221 million in production
• Loses $600 million buying inputs
• Loses $1,700 million buying food
Potential wealth lost each year

Finding Food in Farm Country
Total loss is:
• $2 billion each year!

• This is more than the value of all
food commodities raised in region
U.S. data
Farm Production Balance in U.S., 1929 - 2009
Source: USDA/ERS. Chart by Ken Meter, 2009
450
400
350
300
$ billions (1999 dollars)
250
200
Cash receipts (adj)

150 Production expenses (adj)
Farm Production Balance (adj)
100
50
-
1929
1932
1935
1938
1941
1944
1947
1950
1953
1956
1959
1962
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
(50)
Change in Farm Production Balance, 1969 - 2002
Map by Ken Meter, 2005

Source: BEA
Corn sweeteners consumed
Corn sweeteners
in U.S.,consumed
1966 in
- U.S.,
2002 1966 - 2002
70
60
50
40
HFCS
30 Glucose
Dextrose
20
10
Source: USDA/ERS — chart by Ken Meter, 2006

U.S. Youth Who are Overweight
Percent by Age
Percent
16
14.0%
14
12 10.7% 13%
10
10.7%
8
6 4.6%
4
4.1%
2
0
1963-70 1971-74 1976-80 1988-94 1999
Ages 6-11 Ages 12-17
>95th percentile for BMI by age and sex, based on NHANES I reference data
Source: Troiano RP, Flegal KM. Pediatrics 1998;101(3):497-504. NHANES
1999, National Center for Health Statistics. Chart by Melinda Hemmelgarn
Growing Power, Milwaukee
Value Chain
Food
Service
Producer Processor Distributor Retailer Consumer

Farmers' share of retail prices paid by
consumers, 1950-2004
900
800
700
600
500
400 marketing bill

farm value
300
200
100 41% 20%
Source ERS; chart by Ken Meter, 2007

Value Network
Policy
Council
Non Profits
Consumer:
Producer
“Coproducer”
Processor
Retailer
Educator
Distributor Food
Service
Direct Food Sales
Innovative farm operations
Winter CSA
Milan, Minnesota
Fresh fresh organic greens

November to April
Sells only within 30 miles

Winter CSA — Milan, Minnesota
Winter CSA — Milan, Minnesota
Black Hawk region, Iowa
Jobs, Fruit & Veggies, and
Black Hawk County region
If Black Hawk region residents

purchased locally grown fruits
and vegetables just 3 months out
of the year:
• 475 new jobs
• $6.3 million in labor income
added to local economy
David Swenson, ISU Economist

Will Allen, Growing Power, Milwaukee
Growing Power, Milwaukee
Greensgrow Gardens, Philadelphia
Viroqua, Wisconsin
Economic Development
Association buys former factory
100,000 square feet!
Regional food processing center

Viroqua, Wisconsin
Viroqua Business Cluster
Produce
Distributor 1
Produce
Distributor 2
Processors
TBD
Bakery &
Public Space
Nonprofits
Viroqua Business Cluster
Hospital
Produce
Distributor 1
Root
cellar Produce
Distributor 2
Processors Organic
Food
TBD Valley
co-op
Schools Bakery &

Public Space Amishf
Nonprofits
armers
Viroqua, Wisconsin
Eau Claire, Wisconsin
Producers & Buyers Co-op
• Farmers
• Hospital Food Service
• Distributors
• Truckers
Model Adopted by Viroqua

Northfield, Minnesota
“Home on the Range” Poultry
Latino/Anglo Co-op
“Home on the Range” Poultry
Northfield, Minnesota
Production on scattered ¼-acre sites
Process at large scale, someday
Poultry Business Cluster
P
P
P
P
P P
P
P
P Processing
P P
Eggs
Hazelnuts P
P Grains
P
Apples
P Processing Herbs
P
P Compost
P
Sweet corn
Regi Haslett-Marroquin
Food spending cycles through
economy
Multiplier studies:
SW Wisconsin (farms) 2.2 – 2.6

NE Iowa (local food) 1.91
Oregon (schools) 1.87
Michigan (fruits & vegs) 1.34
Iowa (mainstream) 1.3
Sources: Larry Swain, UWRF, David Swenson, ISU, Kaiser Permanente/

Ecotrust, Hamm et al, MSU, Swenson, ISU
Vision for local food economies
Build:
Health
Wealth
Connection
Capacity
“Finding Food in Farm Country”
www.crcworks.org
(612) 869-8664
kmeter@crcworks.org

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“Local” Foods as

New West Conference

plus Maui & Hawai’i

50 regions in 22 states & one province

The perspectives of the

…are often overlooked

State and local governments

Wall Street Journal, Oct. 11, 2008

Map: Idaho State University

63% of Boise metro

Source: Centers for Disease Control (2008)

Estimated costs for treating

Source: American Diabetes Association (2010)

• 60% of farms sell

• 15% sell more than

Source: USDA Census of Agriculture 2007

Census of Agriculture (2007) — some data** suppressed

Census of Agriculture (2007)

• 880 farms sell direct to consumers

• $5.7 million sales

Source: USDA Census of Agriculture 2007

Direct sales are 0.3% of farm

Source: USDA Census of Agriculture 2007

1,000 $94 million more than 1969

Spend $1.6 billion to raise them

Average gain: $221 million per year

Bureau of Economic Analysis

USDA Census of Agriculture 2007

700 Seed purchased

600 Petroleum products

Source: Ken Meter using data from Agriculture Census 2007

• Consumers buy $1.87 billion

• $1.7 billion from outside region

Source: Ken Meter using Bureau of Labor Statistics

Markets for food eaten at home

Source: Census & BLS

If consumers bought only 15% of

$165 million of new farm income

Source: Ken Meter calculated from BLS & BEA data

1,000 Region’s consumer market

• Gains $221 million in production

• Loses $600 million buying inputs

• Loses $1,700 million buying food

Potential wealth lost each year

Total loss is:

• $2 billion each year!

Cash receipts (adj)

Farm Production Balance (adj)

Map by Ken Meter, 2005

Source: USDA/ERS — chart by Ken Meter, 2006

Producer Processor Distributor Retailer Consumer

400 marketing bill

100 41% 20%

Source ERS; chart by Ken Meter, 2007

Fresh fresh organic greens

Sells only within 30 miles

If Black Hawk region residents

David Swenson, ISU Economist

100,000 square feet!

Regional food processing center

Schools Bakery &

Producers & Buyers Co-op